With the government keen to encourage greater use of public transport and make train travel more appealing, the outlook for railway projects improving.
After some delays linked to a post-election review of government programmes, the signs are that more new work in the sector is now materialising.
Indeed, the prospect of more railway projects coming down the track is a key driver of the dramatic upturn in civil engineering work predicted in the new Glenigan Construction Industry Forecast 2026-27.
Following a 17% increase in the value of underlying (under £100 million) civil engineering project starts next year, it envisages a further 15% growth in starts in the sector in 2027.
The government’s 2025 Spending Review included a major £10.2 billion commitment for capital spending up to 2029/30 to bolster the rail network over and above the sums needed to complete the HS2 link.
Along with funding for the £3.5 billion TransPennine Route upgrade and the £2.5 billion East West Rail (linking Oxford and Cambridge), the Review confirmed a series of generous city-region transport settlements. These pledged £15.6 billion of investments in local rail, trams, and bus schemes – which were confirmed in last month’s Budget – and which will fund numerous new projects around the country.
Preferred bidders
Meanwhile, the Spending Review also approved the £1.75 billion Midlands Rail Hub, where an alliance of preferred bidders has now been appointed (Project ID: 21480349).
The Review also gave a £455 million boost to rail-related spending in Wales. One project in the nation featured in Glenigan data where applications to tender are being invited is the £15 million transport interchange at Milford Haven Train Station. Work on the scheme, which involves relocating a rail platform, is set to start next spring and run for 16 months (Project ID: 24308167).
Network Rail is also poised to invest more in maintaining the country’s rail infrastructure. Under its CP7 framework, the utility is set to invest around £2.8bn over the five years to 2029 to help it cope better with extreme weather and climate change. Investments are set to include maintenance on thousands of miles of drains, cuttings, and embankments.
Glenigan data highlights numerous examples of rail-related construction schemes that are getting underway in the sector, particularly in the north of England.
One which will cater for the growing demand for rail travel to airports is a £65 million remodelling of the train platform at Manchester International Airport.
Kier Construction (North West) has been appointed as the civils contractor on the project to accommodate longer trains serving the airport. Work is due to start next summer and run for 35 months (Project ID: 25171984).
Meanwhile, across the Pennines in West Yorkshire, detailed plans have been granted on Network Rail’s £100 million new Shipley Train Care Depot. Work on the facility, where J Murphy is the main contractor, is set to start later this year and run for 18 months (Project ID: 24154693).
Station refurbishments
Railway station refurbishment projects of various sizes are also creating new work opportunities. In Bournemouth, Octavius Infrastructure has recently been appointed as the civil contractor on the Pokesdown Station Refurbishment, where work is set to start next spring and run for 18 months (Project ID: 22012192).
Elsewhere, a design team has recently been added to the £2.7 million Kidsgrove Station Redevelopment at Stoke on Trent (pictured), which is at the pre-tender stage and where work is due to start next year (Project ID: 23286535).
Some major long-term railway station projects are also in the medium-term pipeline. After the Chancellor pledged funding for two new railway stations in Oxford, plans are taking shape for the £155 million Cowley Branch Line scheme, which has a potential start date of spring 2027 (Project ID: 22279341).
